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Jane Bryant, a Widow, Bought a AAA-Rated, Long-Term Bond Issued

Question 15

Essay

Jane Bryant, a widow, bought a AAA-rated, long-term bond issued by Ford because it was safe and guaranteed. However, she is upset because in yesterday's paper it was reported that the price of her bond dropped by 1/4 ($2.50). Can you calm her down?

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The coupon rate on the bond is fixed. So...

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